Governors of Nigeria's 36 states have received unprecedented allocations from the Federation Account Allocation Committee (FAAC) following President Bola Ahmed Tinubu's removal of petrol subsidies. In July 2026, FAAC distributions reached a record N3.007 trillion, with the total incremental resources from subsidy savings from June 2023 to December 2025 standing at N15.8 trillion. The funds were disbursed among the three tiers of government, with N5.4 trillion going to the federal government and N10.4 trillion shared among states and local governments.
Despite the increased revenue, many Nigerians have expressed disappointment that the funds have not translated into improved living conditions. Dr. Jude Agbor, a political economist, called for an independent commission to probe state and local government spending of the subsidy monies. He stated that most Nigerians cannot point to new infrastructure or social amenities in their communities, and that governors and local government chairmen have treated the windfall like free cash, using it for luxury vehicles and lavish lifestyles.
Dr. Abdulmumin Abdulmalik, an economist and lecturer at Federal University Lokoja, echoed similar sentiments, stating that most governors have not done enough with the windfall to benefit their states. He noted that the subsidy removal led to increased costs of transportation, food, and other essentials, and that the funds should have been redistributed to ease the impact on Nigerians.
Dr. Stanley Nwani, a university lecturer, blamed the gap between larger government budgets and citizens' welfare on weak project-monitoring and poor price regulation. He argued that increased public resources had not translated into commensurate improvements in living conditions, and that greater scrutiny of state and local governments' finances was needed.
A public affairs analyst, Mr. Jide Olamilekan, stated that there are no investments in infrastructure and social amenities to justify huge allocations to states. He noted that Nigerians are forced to bear the brunt of inflated costs for everyday goods, and that there is no visible government intervention in healthcare or education.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently gave a breakdown of how the proceeds from fuel subsidy removal were disbursed among the three tiers of government. The revelation has sparked reactions and admonitions from Nigerians, who are demanding accountability from governors on the spending of the subsidy windfall.
Key stakeholders are calling for greater transparency and accountability in the management of the subsidy windfall. They argue that the funds should be used to improve infrastructure, healthcare, education, and other public services, rather than being used for personal gain or lavish spending.
Key points
- Governors have received unprecedented allocations from the Federation Account Allocation Committee (FAAC) following President Bola Ahmed Tinubu's removal of petrol subsidies.
- Nigerians are demanding accountability from governors on the spending of the subsidy windfall.
- The funds should be used to improve infrastructure, healthcare, education, and other public services, rather than being used for personal gain or lavish spending.
